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Nancy Kiro Is Selling Her Florist Shop to Boris Kranz

Question 14

Multiple Choice

Nancy Kiro is selling her florist shop to Boris Kranz. In the course of negotiating the deal, Boris asks her if she is aware of any reason why the business might be less profitable after he takes over. Nancy tells him that she anticipates that costs generally will rise by 14% in the next 12 months. She does not tell him that her major customer, responsible for nearly 40% of her sales, is planning to leave town in two months. The written agreement contains no warranties. When Boris finds out the bad news - after the deal goes through - can he successfully sue Nancy?


A) No. Nancy did not make any misrepresentation.
B) No. Boris had a duty to make his own inquiries.
C) No. There was no special relationship between the parties.
D) Yes. Once Nancy chose to answer Boris's specific question, she was obliged to answer it honestly and fully.
E) Both B and C

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